Motivating Employees

Motivating Employees

Snayhil Rana

LEARNING OUTLINE What Is Motivation? • Define motivation. • Explain motivation as a need-satisfying process.

Early Theories of Motivation • Describe Maslow’s hierarchy of needs and how it can be used to motivate. • Discuss how Theory X and Theory Y managers approach motivation. • Describe Herzberg’s motivation-hygiene theory. • Explain Herzberg’s views of satisfaction and dissatisfaction.

L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter.

Contemporary Theories of Motivation • Describe the three needs McClelland proposed as being present in work settings. • Explain how goal-setting and reinforcement theories explain employee motivation. • Describe the job characteristics model as a way to design motivating jobs. • Discuss the motivation implications of equity theory. • Contrast distributive justice and procedural justice. • Explain the three key linkages in expectancy theory and their role in motivation.

L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter.

Current Issues in Motivation • Describe the cross-cultural challenges of motivation. • Discuss the challenges managers face in motivating unique groups of workers. • Describe open-book management, employee recognition, pay-for-performance, and stock option programs.

What Is Motivation? • Motivation  Is the result of an interaction between the person and a situation; it is not a personal trait.  Is the process by which a person’s efforts are energized, directed, and sustained towards attaining a goal. 

Energy: a measure of intensity or drive.



Direction: toward organizational goals



Persistence: exerting effort to achieve goals.

 Motivation works best when individual needs are compatible with organizational goals.

Early Theories of Motivation • Maslow’s Hierarchy of Needs • MacGregor’s Theories X and Y • Herzberg’s Two-Factor Theory

Early Theories of Motivation • Maslow’s Hierarchy of Needs Theory  Needs were categorized as five levels of lower- to higher-order needs. Individuals must satisfy lower-order needs before they can satisfy higher order needs.  Satisfied needs will no longer motivate.  Motivating a person depends on knowing at what level that person is on the hierarchy. 

 Hierarchy of needs Lower-order (external): physiological, safety  Higher-order (internal): social, esteem, self-actualization 

Exhibit : Maslow’s Hierarchy of Needs

Early Theories of Motivation (cont’d) • McGregor’s Theory X and Theory Y  Theory X 

Assumes that workers have little ambition, dislike work, avoid responsibility, and require close supervision.

 Theory Y 

Assumes that workers can exercise self-direction, desire responsibility, and like to work.

 Assumption: 

Motivation is maximized by participative decision making, interesting jobs, and good group relations.

Early Theories of Motivation (cont’d) • Herzberg’s Motivation-Hygiene Theory  Job satisfaction and job dissatisfaction are created by different factors. 

Hygiene factors: extrinsic (environmental) factors that create job dissatisfaction.



Motivators: intrinsic (psychological) factors that create job satisfaction.

 Attempted to explain why job satisfaction does not result in increased performance. 

The opposite of satisfaction is not dissatisfaction, but rather no satisfaction.

Exhibit : Herzberg’s Motivation-Hygiene Theory

Exhibit :Contrasting Views of Satisfaction-Dissatisfaction

Contemporary Theories of Motivation • Three-Needs Theory • Goal-Setting Theory • Reinforcement Theory • Designing Motivating Jobs • Equity Theory • Expectancy Theory

Motivation and Needs • Three-Needs Theory (McClelland)  There are three major acquired needs that are major motives in work. 

Need for achievement (nAch) – The drive to excel and succeed



Need for power (nPow) – The need to influence the behavior of others



Need of affiliation (nAff) – The desire for interpersonal relationships

Motivation and Goals • Goal-Setting Theory  Proposes that setting goals that are accepted, specific, and challenging yet achievable will result in higher performance than having no or easy goals.  Is culture bound to the U.S. and Canada.

• Benefits of Participation in Goal-Setting  Increases the acceptance of goals.  Fosters commitment to difficult, public goals.  Provides for self-feedback (internal locus of control) that guides behavior and motivates performance (selfefficacy).

Exhibit : Goal-Setting Theory

Motivation and Behavior • Reinforcement Theory  Assumes that a desired behavior is a function of its consequences, is externally caused, and if reinforced, is likely to be repeated. 

Positive reinforcement is preferred for its long-term effects on performance



Ignoring undesired behavior is better than punishment which may create additional dysfunctional behaviors.

Designing Motivating Jobs • Job Design  The way into which tasks can be combined to form complete jobs.  Factors influencing job design: Changing organizational environment/structure  The organization’s technology  Employees’ skill, abilities, and preferences 

 Job enlargement 

Increasing the job’s scope (number and frequency of tasks)

 Job enrichment 

Increasing responsibility and autonomy (depth) in a job.

Designing Motivating Jobs (cont’d) • Job Characteristics Model (JCM)  A conceptual framework for designing motivating jobs that create meaningful work experiences that satisfy employees’ growth needs.  Five primary job characteristics: 

Skill variety: how many skills and talents are needed?



Task identity: does the job produce a complete work?



Task significance: how important is the job?



Autonomy: how much independence does the jobholder have?



Feedback: do workers know how well they are doing?

Exhibit : Job Characteristics Model

Exhibit : Guidelines for Job Redesign

Source: J.R. Hackman and J.L. Suttle (eds.). Improving Life at Work (Glenview, IL: Scott, Foresman, 1977). With permission of the authors.

Designing Motivating Jobs (cont’d) • Suggestions for Using the JCM  Combine tasks (job enlargement) to create more meaningful work.  Create natural work units to make employees’ work important and whole.  Establish external and internal client relationships to provide feedback.  Expand jobs vertically (job enrichment) by giving employees more autonomy.  Open feedback channels to let employees know how well they are doing.

Motivation and Perception • Equity Theory  Proposes that employees perceive what they get from a job situation (outcomes) in relation to what they put in (inputs) and then compare their inputs-outcomes ratio with the inputs-outcomes ratios of relevant others. 

If the ratios are perceived as equal then a state of equity (fairness) exists.



If the ratios are perceived as unequal, inequity exists and the person feels under- or over-rewarded.



When inequities occur, employees will attempt to do something to rebalance the ratios (seek justice).

Motivation and Perception (cont’d) • Equity Theory (cont’d)  Employee responses to perceived inequities: 

Distort own or others’ ratios.



Induce others to change their own inputs or outcomes.



Change own inputs (increase or decrease efforts) or outcomes (seek greater rewards).



Choose a different comparison (referent) other (person, systems, or self).



Quit their job.

 Employees are concerned with both the absolute and relative nature of organizational rewards.

Exhibit :Equity Theory

Motivation and Perception (cont’d) • Equity Theory (cont’d)  Distributive justice 

The perceived fairness of the amount and allocation of rewards among individuals (i.e., who received what). – Influences an employee’s satisfaction.

 Procedural justice 

The perceived fairness of the process use to determine the distribution of rewards (i.e., how who received what). – Affects an employee’s organizational commitment.

Motivation and Behavior • Expectancy Theory (Vroom)  States that an individual tends to act in a certain way based on the expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual.  Key to the theory is understanding and managing employee goals and the linkages among and between effort, performance and rewards. 

Effort: employee abilities and training/development



Performance: valid appraisal systems



Rewards (goals): understanding employee needs

Exhibit : Simplified Expectancy Model

Motivation and Behavior (cont’d) • Expectancy Relationships  Expectancy (effort-performance linkage) 

The perceived probability that an individual’s effort will result in a certain level of performance.

 Instrumentality 

The perception that a particular level of performance will result in the attaining a desired outcome (reward).

 Valence 

The attractiveness/importance of the performance reward (outcome) to the individual.

Exhibit : Integrating Contemporary Theories of Motivation

Current Issues in Motivation • Cross-Cultural Challenges  Motivational programs are most applicable in cultures where individualism and quality of life are cultural characteristics 

Uncertainty avoidance of some cultures inverts Maslow’s needs hierarchy.



The need for achievement (nAch) is lacking in other cultures.



Collectivist cultures view rewards as “entitlements” to be distributed based on individual needs, not individual performance.

 Cross-Cultural Consistencies 

Interesting work is widely desired, as is growth, achievement, and responsibility.

Current Issues in Motivation (cont’d) • Motivating Unique Groups of Workers  Motivating a diverse workforce through flexibility: 

Men desire more autonomy than do women.



Women desire learning opportunities, flexible work schedules, and good interpersonal relations.

Current Issues in Motivation (cont’d) • Flexible Work/Job schedules  Compressed work week 

Longer daily hours, but fewer days

 Flexible work hours (flextime) 

Specific weekly hours with varying arrival, departure, lunch and break times around certain core hours during which all employees must be present.

 Job Sharing 

Two or more people split a full-time job.

 Telecommuting 

Employees work from home using computer links.

Current Issues in Motivation (cont’d) • Motivating Professionals  Characteristics of professionals 

Strong and long-term commitment to their field of expertise.



Loyalty is to their profession, not to the employer.



Have the need to regularly update their knowledge.



Don’t define their workweek as 8:00 am to 5:00 pm.

 Motivators for professionals 

Job challenge



Organizational support of their work

Current Issues in Motivation (cont’d) • Motivating Contingent Workers  Opportunity to become a permanent employee  Opportunity for training  Equity in compensation and benefits

• Motivating Low-Skilled, Minimum-Wage Employees  Employee recognition programs  Provision of sincere praise

Current Issues in Motivation (cont’d) • Designing Appropriate Rewards Programs  Open-book management 

Involving employees in workplace decision by opening up the financial statements of the employer.

 Employee recognition programs 

Giving personal attention and expressing interest, approval, and appreciation for a job well done.

 Pay-for-performance 

Variable compensation plans that reward employees on the basis of their performance: – Piece rates, wage incentives, profit-sharing, and lump-sum bonuses

Current Issues in Motivation (cont’d) • Designing Appropriate Rewards Programs (cont’d)  Stock option programs 

Using financial instruments (in lieu of monetary compensation) that give employees the right to purchase shares of company stock at a set (option) price.



Options have value if the stock price rises above the option price; they become worthless if the stock price falls below the option price.

Exhibit :Recommendations for Designing Stock Options

Exhibit : (cont’d) Recommendations for Designing Stock Options

Summery: From Theory to Practice; Guidelines for Motivating Employees • Use goals • Ensure that goals are perceived as attainable • Individualize rewards • Link rewards to performance

• Check the system for equity • Use recognition • Show care and concern for employees • Don’t ignore money